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DHS gives EAGLE II protesters a second look

The Homeland Security Department is taking a second look at the proposals of all
46 vendors who protested their exclusion from the multi-billion dollar IT services
contract known as EAGLE II.
The Government Accountability Office sent a note to protesting parties Dec. 23
saying it has dismissed their protest because DHS decided to take "corrective
action."

"Specifically, the agency explains that it will reevaluate the [company's]
proposal, and if the proposal represents the best value to the agency, DHS will
award the firm a contract," GAO wrote in the email, which was obtained by Federal
News Radio. "These actions render the protest academic. We do not consider
academic protests because to do so would serve no useful public policy purpose."

A DHS spokeswoman said in an email there are no updates on the EAGLE II contract
at this time.

DHS awarded 15 companies a
spot under EAGLE II's functional category one unrestricted portion of the
contract-by-and-large the most competitive and sought after part of the seven-
year, $22 billion umbrella of contracts.

After the government shutdown, DHS sent email debriefs to the unsuccessful bidders
and 46 filed protests with
GAO and another vendor, STG, filed with the Court of Federal Claims.

One industry expert said they weren't surprised DHS decided to reconsider the
bids.

"There was one major core performance issue about whether this was a best value
procurement that was exercised as lowest-price technically acceptable," said the
industry expert, who requested anonymity in order to speak about an ongoing
procurement. "DHS in letters to the Hill said it wasn't LPTA, but there is some
evidence they had a cutline of $500 million. If that was the case, there are some
folks who believe that the protest has legs. If you read the procurement, the RFP
says price is less important than technical capabilities, but when you create a
price cutline that makes price pretty important."

The source said DHS received between 70 and 80 bids for this functional category.

"Is this an Alliant coming? I'm not sure," the expert said referring to the
General Services Administration's decision to let all bidders on the Alliant IT
services contract after several protested to GAO in March 2009. "DHS is in a
difficult position. They were trying to push a high quality procurement and if
protests are successful, then it's a black eye and a big one."

If DHS decides not to let every protestor on to EAGLE II, the unsuccessful bidders
could resubmit their protest to GAO, once again delaying the contract.